Lenovo India, a prominent PC and laptop maker with $1.9 billion in revenue, recently launched a new desktop computer equipped with a locally made motherboard. This development aligns with the Indian government’s Preferential Market Access (PMA) policy, positioning Lenovo in the advantageous Class 1 PMA bracket. This status is achieved by ensuring over 50% of components in select products are sourced locally.
In a significant stride towards supporting the ‘Make in India‘ initiative, Lenovo India has achieved a key milestone by qualifying for the Class 1 Preferential Market Access (PMA) bracket. This notable achievement comes as the company ensures that over 50% of the components used in a selected range of its products are now sourced and manufactured locally. This move not only reinforces Lenovo’s commitment to boosting domestic production but also positions it favorably in the Indian market, especially in terms of government procurement policies.
Speaking at the Puducherry factory to the media, Lenovo India’s COO Saurabh Agrawal highlighted the significance of this step in boosting the company’s manufacturing capabilities in India. The locally produced motherboards in desktops not only comply with government norms but also strengthen Lenovo’s bid in government tenders.
This move follows Lenovo’s recent inauguration of a Shared Support Center in Bengaluru, emphasizing the company’s commitment to local R&D and job creation in India. The initiative is timely, considering the stable demand for laptops post-COVID-19, when online classes surged their usage.
Lenovo’s Puducherry plant, with an annual production capacity of 1.4 million units, currently operates at 45% capacity. Last year, it produced 740,000 units, with a target of one million units this year. The plant predominantly manufactures desktops (70%) and a smaller proportion of laptops and other devices (30%).
With the IT Hardware Scheme’s PLI 2.0 (Production Linked Incentive) approval for 27 firms, Lenovo India sees an opportunity to expand its PC production, aligning with India’s ‘Make in India’ initiative. While laptops continue to be in demand, desktops, which account for nearly 40% of the commercial segment, remain a significant part of the market. The company, however, has outsourced the manufacturing of mobile phones and tablets to two contract manufacturers.